Progress Report on Plan to Comply with Listing Maintenance Standards (Net Asset Criteria)

Overview of Performance

For the third quarter of the fiscal year ending November 2026, revenue was 2,663,827 thousand yen, an 8.0% increase year-over-year. However, on a quarterly basis the company still recorded operating loss, ordinary loss, and a quarterly net loss attributable to owners of parent. Net assets improved to 5,809 thousand yen (end of prior fiscal year: -95,937 thousand yen), and GRCS Inc. continues efforts to meet the listing maintenance standards based on net asset criteria. The full-year forecast has been revised to revenue of 3,569,557 thousand yen (7.1% increase vs prior year), operating loss of 130,358 thousand yen, ordinary loss of 157,464 thousand yen, and net loss attributable to owners of parent of 512,199 thousand yen.

Growth Strategy and Future Policy

The company executed capital enhancement through the exercise of warrants and a third-party allotment. The joint AI model development project is progressing smoothly and is expected to contribute to profit improvement. The GRC security business is progressing ahead of plan this fiscal year and is contributing to profit accumulation. Going forward, GRCS Inc. will advance four growth strategies—"Accumulation of Specialized Knowledge", "Standardization through AI Implementation", "Expansion of Client Base", and "Accumulation of Recurring Revenue"—and aims to meet the listing maintenance standards by November 30, 2026.